Alternative Credit Convertibles
The Zazove High Yield Convertibles Strategy takes advantage of an inefficient (or “busted”) segment of the convertible market. The strategy is an absolute return approach to convertible bond investing that realizes high current income and capital appreciation. The investment objective is accomplished by constructing and managing a diversified portfolio of higher yielding convertibles, generally issued by companies with sub investment grade credit ratings. The investment team utilizes a bottom-up, fundamental credit research and investment process to identify issuers with viable business models and acceptable credit risk that are undervalued, out-of-favor, or overlooked. The portfolio is constructed to offer a substantial risk-adjusted yield advantage and capital appreciation as compared to similarly rated straight debt investments.